Dollar Falls on Bets Oil Slide Gives Fed Room to Keep Rates Low

The dollar weakened versus the euro on speculation falling crude oil prices will ease inflationary pressure in the U.S., giving the Federal Reserve time to wait before raising interest rates.

Crude oil declined to a four-year low before a U.S. retail sales report tomorrow forecast to show a small increase. Fed Bank of New York President William C. Dudley said raising interest rates too early poses a bigger risk to the economy than acting too late. The pound fell to the lowest in more than a year as a property slowdown deepened. The ruble declined as the European Union weighed adding sanctions against Russia.

The dollar depreciated 0.4 percent to $1.2486 per euro at 3:27 p.m. New York time. The U.S. currency climbed 0.2 percent to 115.74 yen. The euro strengthened 0.6 percent to 144.50 yen.

Crude-oil futures declined 3 percent to $74.80 a barrel in New York, reaching the lowest level since September 2010.